London's FTSE 100 Ends Week in Negative Territory
The FTSE 100 index concluded a challenging week on a downward trend, closing down 53.21 points, or 0.6%, at 9,682.57 on Friday 7th November 2025. The broader London market also felt the pressure, with the FTSE 250 falling 131.64 points (0.6%) to 21,773.39 and the AIM All-Share dropping 3.66 points (0.5%) to 749.47.
Tech Stocks and Blue-Chip Falls Drive Market Weakness
The selling pressure wasn't confined to London. European markets mirrored the decline, with Frankfurt's DAX 40 closing 0.7% lower and Paris's CAC 40 down 0.2%. Across the Atlantic, Wall Street experienced significant losses, particularly in technology stocks, with the Nasdaq Composite declining 1.9%.
Joshua Mahony at Scope Markets noted that "the broader market has been led lower by a pullback in mega-cap tech, with semiconductors particularly under pressure." However, he suggested that with corporate earnings remaining strong, many investors might see this as a buying opportunity rather than the start of a major reversal.
Rightmove and IAG Lead FTSE 100 Fallers
Two major blue-chip companies experienced dramatic falls. Rightmove plunged 12% after warning that operating profit growth could slow as it plans significant investment in artificial intelligence capabilities between 2026 and 2028. The property portal introduced guidance for 2026 of revenue growth between 8% and 10%, but operating profit growth of just 3% to 5%.
Russ Mould, investment director at AJ Bell, commented: "Investing for future growth is not a bad thing but the scale of the market's negative reaction implies real scepticism about its decision to put so much money into AI."
Meanwhile, British Airways owner IAG also fell 12% after reporting "softness" in US travel and weaker prices in the European market. The airline specifically noted challenges in North Atlantic leisure travel and competitive pressures affecting pricing.
Analysts Remain Cautiously Optimistic
Despite the week's volatility, some analysts maintained a positive outlook. Mark Haefele, chief investment officer at UBS Global Wealth Management, stated that "bouts of volatility should not come as a surprise after a strong run over the past several months." He argued that high stock valuations "do not necessarily signal an imminent correction" and that the tech sector's core metrics remain "robust."
In a significant development, Goldman Sachs raised its 12-month prediction for the FTSE 100, now expecting London's blue-chip index to surpass 10,000 within six months and reach 10,200 in twelve months, up from a previous target of 9,600.
Other Market Movements and Economic Outlook
On the FTSE 250, ITV jumped 17% after confirming early-stage talks to sell its media and entertainment arm to Comcast-owned Sky in a potential £1.6 billion deal. Oxford Nanopore also gained 4.7% after providing upbeat full-year guidance.
In currency markets, sterling strengthened to $1.3166 at the London close, up from $1.3106 the previous day. The euro also gained against the dollar, standing at $1.1582.
Looking ahead, investors will focus on upcoming UK jobs, earnings and GDP data, along with key economic indicators from China and the eurozone. The market will also watch for Chancellor Rachel Reeves's budget plans, which have been submitted to the Office for Budget Responsibility for assessment.
